To merge or not to merge – a pension question?

Pension liabilities have been cited as one of the main barriers to pursuing a merger, and it is understandable given the complexities of the legislation, HR issues and potential threat of triggering a significant financial burden.

It is no wonder then that the last two years has seen few mergers completed and a significant number being abandoned before conclusion.

Mergers are inevitable in the current market environment as a way of improving competitiveness, scale and efficiencies, but to navigate the pension minefield professional advice sought at an early stage of the negotiations is vital.

This advice would allow a full investigation of the implications of any change to ensure short term objectives are not being met at the expense of the long term security of the organisation.